Update: Longshoremen and Maritime Alliance Agreement Reached, Second Port Strike Shutdown Averted

Update (1-9-2025):

Last night, the ILA and USMX agreed to a new master contract for East Coast and Gulf Coast ports. This ensures that no port strike will occur next week. A joint statement was released from both organizations:

“The International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) have reached a tentative agreement on all items for a new six-year Master Contract. The two sides agreed to continue to operate under the current contract until the union can meet with its full Wage Scale Committee and schedule a ratification vote, and USMX members can ratify the terms of the final contract.”

Full statement available here.

Update (10-4-2024): Last night, the ILA and USMX agreed to a temporary contract extension until January 15, 2025. Both sides must negotiate a new master contract to prevent a second port strike. The new contract deadline is after the import prohibition for components used to install complete systems, reducing the impact on our industry if another strike occurs, however, any lengthy port strike could cause significant disruptions across the economy.

Update (10-2-2024): HARDI has joined over 270 trade associations in calling on President Biden and the administration to end the strike affecting ports along the Atlantic and Gulf Coasts. The port strike is affecting billions of dollars of goods trying to enter the United States. The letter states in part: “On behalf of the undersigned organizations representing American
manufacturers, farmers and agribusinesses, wholesalers, retailers, restaurants, importers, exporters, distributors, transportation and logistics providers, and other supply chain stakeholders, we are calling upon you and the administration to immediately use your authorities to end the strike which has shut down all East Coast and Gulf Coast container ports. Given the dire situation and the massive negative ramifications for our industries
and the economy, we implore you to take immediate action to resolve this situation expeditiously.”

View the full letter here.

Read HARDI’s News in 5 to learn more about the impact of the port strike on the HVAC industry.

10-1-2024: At 12:01 on October 1, the International Longshoremen’s Association (ILA) began picketing ports along the Atlantic and Gulf Coasts over the failure of negotiations with the U.S. Maritime Alliance (USMX). In the final days leading up to the strike, USMX increased their wage offer to a 50% increase over six years. However, ILA refused to restart negotiations with less than a 77% increase.

Coincidentally, the Environmental Protection Agency also released data on the top 10 ports of entry for HFC products, 8 of the top 10 are at affected ports.

HARDI will continue to post updates as more information becomes available.

Original post (9-23-2024):

With one week left before contract expiration, the U.S Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) have not held formal negotiations to renew the expiring East and Gulf Coasts port contract for several weeks. The current contract expires on September 30, and the union has already said the longshoremen would strike at the affected ports if a new contract is not finalized. ILA released this statement last week:

ILA is seeking a nearly 80% wage increase for dock workers at ports on the Atlantic and Gulf of Mexico ports. Additionally, the union is demanding a decrease in the level of automation used at ports. ILA reached a new union contract for West Coast ports last year with a 32% wage increase. USMX offered a larger wage increase than the wage change achieved by the West Coast dock workers in 2023, increased retirement contributions, higher starting wages, and retained language preventing ports from becoming fully automated; so far, ILA has continued to reject USMX’s offer and attempts to return to the negotiations.

If the Atlantic and Gulf of Mexico ports go on strike, the master agreement for the west coast ports will not allow dock workers to strike at those ports; the strike would be limited to U.S.-based Atlantic and Gulf of Mexico ports. The last strike to affect these ports occurred in 1977.

A port strike could impact imports covered by EPA rule

With an upcoming import deadline for HVACR equipment as part of EPA’s Technology Transition Rule, any companies importing products should examine alternative ports in case of a strike that could have ripple effects delaying imports through December 31, 2024. As a reminder, EPA’s definition of import is:

Until there is a strike and negative impacts can be quantified, we do not know if the EPA will offer any relief for the import date requirement.

HARDI has been tracking the port negotiations through the Ports Coalition operated by the National Retail Federation. As part of the coalition, HARDI joined 177 organizations in signing a coalition letter to President Biden urging the administration to prevent a strike by the union.